Shanghai, in collaboration with Alipay and Bank of China, has upgraded its departure tax refund service, enabling global tourists to instantly claim tax refunds using Alipay's innovative "Alipay Tap" feature.

This marks the world's first "Tap for Tax Refund" service for international tourists, aiming to further boost international travel and shopping experience in China.

Fernando, a tourist from Spain, was among the first to experience the new service at the Xintiandi shopping area in downtown Shanghai.

After making a purchase, he completed the necessary paperwork and credit card pre-authorization, then tapped his Alipay account against a refund terminal and received his tax refund within seconds.

Several merchants in Xintiandi have already implemented Alipay's "Tap for Tax Refund" system to enhance payment convenience for both local and international shoppers.

Fernando praised the convenience, contrasting it with the often time-consuming and complicated airport refund processes he has experienced elsewhere.

The new tax refund service follows an announcement by the State Taxation Administration in April, which made a shift from a refund-upon-departure model to a refund-upon-purchase model for departure tax refunds, enabling foreign visitors to instantly claim value-added tax rebates at tax-free stores across the country.

By May, the Shanghai Municipal Tax Service and the Shanghai Municipal Commission of Commerce, together with Alipay, initiated the upgrade, currently available at the Plaza 66 and Xintiandi tax refund points, with plans to expand citywide.

As part of efforts to further stimulate inbound tourism spending, Alipay launched the "Tour China Service Plan" on April 23. It includes services like "Tap for Tax Refund" to improve tourists' experiences with entertainment and shopping.

Alipay data reveals a 170 percent year-on-year increase in spending by international tourists in Shanghai via Alipay between January and May of this year.

Source: Shanghai Observer